MIRA INFORM REPORT

 

 

Report Date :

22.12.2014

 

IDENTIFICATION DETAILS

 

Name :

HYUNDAI ENGINEERING PLASTICS CO., LTD.

 

 

Registered Office :

1221-32, Daehoman-Ro, Seokmun-Myeon, Dangjin-Si, Chungcheongnam-Do, 343-856

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2014

 

 

Date of Incorporation :

05.01.2000

 

 

Com. Reg. No.:

311-81-13651

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Synthetic Resin and Other Plastic Materials

 

 

No. of Employees :

376

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long term challenges include a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP.

 

Source : CIA

 

 

Basic Information

 

Company Name

HYUNDAI EP CO., LTD.

(English Company Name: HYUNDAI ENGINEERING PLASTICS CO., LTD.)

(Trade Name: HEP CO., LTD.)

Registered Address

1221-32, Daehoman-ro, Seokmun-myeon, Dangjin-si, Chungcheongnam-do, Korea

Building

 

Zip Code

343-856

Tel

+82-41-350-0500

Fax

+82-41-350-0505

E-mail

jjoon@hyundai-ep.com

Website

www.hyundai-ep.com

Trading Address

1221-32, Daehoman-ro, Seokmun-myeon, Dangjin-si, Chungcheongnam-do, Korea

(Old Address System : 1233, Tongjeong-ri, Seokmun-myeon, Dangjin-si, Chungcheongnam-do, Korea)

Tel

+82-41-350-0500

Fax

+82-41-350-0505

Other Address-Bundang Office

5~6F, 102-DONG, I-PARK, 239, Jeongjail-ro, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea

(Old Address System : 5~6F, 102-DONG, I-PARK, 9, Jeongja-dong, Bundang-gu, Seongnam-si, Gyeonggi-do, Korea)

Tel

+82-31-785-2746

Fax

+82-31-785-2766

Other Address- -Ulsan Factory

108-256, Sapyeong-ro, Nam-gu, Ulsan, Korea

(Old Address System : 665, Bugok-dong, Nam-gu, Ulsan, Korea)

Tel

+82-52-279-0500

Fax

+82-52-279-0505

Other Address-Jincheon Factory

690, Gwanghyewon-ri, Gwanghyewon-myeon, Jincheon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-530-0500

Fax

+82-43-530-0505

Other Address-Jochiwon Factory

130, Gongdan-ro, Yeongi-myeon, Sejong, Korea

(Old Address System : 519, Yeon-gi-ri, Yeongi-myeon, Sejong, Korea)

Tel

+82-41-860-3533

Fax

+82-41-860-3505

Type

Export/Import

Industry

Manufacture of Synthetic Resin and Other Plastic Materials

  Main Business

PP Compounds, Breathable Compounds, Thermoplastic Elastomer, Adhesive Resin, Crosslinkable PE, Barrier Resin, PE Pipe

  Sub Business

 

Established (mm/dd/yyyy)

01/05/2000

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Shells and casings(31261600)

Sell

Vehicle trim and exterior covering(25172600)

Sell

Plastic plate(30102215)

Sell

Thermoplastic plastics(13102000)

Sell

Resins(13111000)

Sell

Polypropylene PP(13102022)

Sell

Elastomers(13101700)

Sell

Compounded resin(13111037)

 

 

CEO’s

 

Name

Lee Kun-Won

Address

 

Date of Birth

08/26/1945

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

17,200,000,000

Employees

376

Formation

Listed Company (Korea Stock Exchange : 089470) as of 09/25/2006

A Company of HYUNDAI DEVELOPMENT COMPANY

Bank Details

Kookmin Bank-Bundang Corporate Branch

Corporate Registered No.

165011-0006768

Business Registered No.

311-81-13651

Permit & Licenses

Int’l Trade No.: 45202348

Shareholder Position

Name

Shares

%

HYUNDAI DEVELOPMENT CO.-ENGINEERING & CONSTRUCTION(110111-0279433)

14,757,000

46.26

NATIONAL PENSION SERVICE(110171-0007134)

2,335,226

7.32

SHINHAN BNP PARIBAS ITMC CO.,LTD.(110111-1304164)

1,672,455

5.24

OTHERS

13,135,319

41.18

TOTAL

31,900,000

100.00

Company History

01/05/2000 Incorporated as HYUNDAI ENGINEERING PLASTICS CO., LTD.

07/28/2006 Changed company name to the present name(HYUNDAI EP CO., LTD.

06/14/2007 Acquired Specialty Polymer Business from SK Corp.

08/23/2010 Acquired PB-1 Pipe Business from Korea PEM Co., Ltd.

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Vice Chairman & CEO

Mr.

Lee Kun-Won

Korean

1945.08.26

Hanyang University, Korea

Vice President & CEO

Mr.

Kang Chang-Kyun

Korean

1960.06

Korea University, Korea

Chairman

Mr.

Chung Mong-Kyu

Korean

1962.01.14

Oxford University, UK

Outside Director

Mr.

Lee Seung-Koo

Korean

1948.03

Hanyang University, Korea

Auditor

Mr.

Bae Ki-Woong

Korean

1952.02

-

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2014

601,684,509,491

486,706,464,223

20,919,338,934

(*)2013

793,359,521,036

478,849,199,894

20,407,390,335

(*)2012

688,785,526,784

418,286,901,208

14,269,072,243

(*)2011

628,188,134,000

317,223,047,000

14,932,659,000

2010

452,780,679,109

223,238,479,919

10,644,647,136

2009

211,155,125,507

149,285,239,150

8,982,823,864

2008

223,919,366,520

126,006,021,943

8,170,418,934

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

75,000,000,000

Paid-Up Capital(KRW)

17,200,000,000

Total Issued Shares

31,900,000

 

Balance Sheet

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

486,706,464,223

478,849,199,894

418,286,901,208

Current Assets

292,562,021,034

295,497,636,896

241,759,670,397

Cash & Cash Equivalents

2,997,424,072

8,575,845,036

5,951,296,619

Trade Receivables

197,365,835,934

190,006,460,089

162,233,272,972

Other Receivables

6,849,103,038

7,282,786,307

5,687,839,121

Inventories

84,731,932,173

88,929,617,144

67,446,875,880

Other Current Assets

617,725,817

702,928,320

440,385,805

Non-Current Assets

194,144,443,189

183,351,562,998

176,527,230,811

Non-Current Financial Instruments

5,000,000

5,000,000

5,000,000

Marketable Financial Instruments

425,279,527

511,231,775

163,601,012

Investment_Related Companies

44,077,408,208

40,674,052,208

40,674,052,208

Other Receivables

671,303,332

653,268,294

1,942,387,842

Tangibles

109,806,292,682

102,343,623,280

129,192,104,614

Intangibles

4,465,023,857

4,472,451,035

4,482,353,939

Investment_Real Estates

34,663,505,172

34,663,505,172

0

Other Non-Current Assets

30,630,411

28,431,234

67,731,196

Total Liabilities

326,491,653,539

336,983,161,285

294,676,256,736

Current Liabilities

305,333,474,005

253,591,847,665

208,044,342,842

Trade Payables

99,993,642,595

116,305,316,358

85,972,690,533

Short-Term Borrowings

117,526,964,822

92,353,605,621

86,810,795,390

Other Payables

8,271,209,400

13,860,594,299

15,688,676,670

Accrued Income Tax

4,095,803,288

3,580,584,026

2,282,823,848

Current Portion of Long-Term Debts

74,000,000,000

26,000,000,000

16,000,000,000

Other Current Liabilities

1,356,500,480

1,388,349,854

1,224,228,487

Provisions

89,353,420

103,397,507

65,127,914

Non-Current Liabilities

21,158,179,534

83,391,313,620

86,631,913,894

Long-Term Borrowings

15,000,000,000

79,000,000,000

81,600,000,000

Confirmed Salaries

3,368,294,343

1,725,514,004

1,562,351,219

Other Non-Current Liabilities

30,630,411

28,431,234

67,731,196

Deferred Income Tax Credit

2,632,131,575

2,637,368,382

3,401,831,479

Other Payables

127,123,205

0

0

Capital Stock

17,200,000,000

17,200,000,000

17,200,000,000

Capital Surplus

31,714,633,833

31,714,633,833

31,714,633,833

Others

22,031,881

13,972,150

7,055,722

Profit Surplus

111,278,144,970

92,937,432,626

74,688,954,917

Total Equity

160,214,810,684

141,866,038,609

123,610,644,472

Liab. & Shareholder’s Equity

486,706,464,223

478,849,199,894

418,286,901,208

 

Income Statement

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Sales

601,684,509,491

793,359,521,036

688,785,526,784

Cost of Sold Goods

548,084,927,775

733,007,796,214

640,951,378,280

Gross Profit

53,599,581,716

60,351,724,822

47,834,148,504

Selling & Admin. Expenses

27,071,067,987

33,369,023,562

30,076,325,488

Operating Income

26,528,513,729

26,982,701,260

17,757,823,016

Other Income

5,854,648,828

7,586,372,587

7,525,556,784

Other Expenses

140,553,554

504,601,531

1,691,704,510

Finance Income

3,512,950,188

4,997,276,160

4,231,554,486

Finance Expenses

9,307,856,018

13,426,938,138

10,561,746,863

Income Before Taxes

26,447,703,173

25,634,810,338

17,261,482,913

Income Taxes Expenses

5,528,364,239

5,227,420,003

2,992,410,670

Net Income

20,919,338,934

20,407,390,335

14,269,072,243

 

Cash Flows

Unit : Korean Won

01/01/2014~09/30/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

2,151,057,431

10,845,982,550

-3,556,995,998

Cash Flows from Operating

12,802,320,052

23,571,225,699

5,169,624,565

Interests Received

99,879,972

53,234,253

8,158,692

Interests Paid

-5,936,410,408

-8,452,556,394

-6,046,660,176

Dividends Received

198,412,792

301,074,782

889,600,139

Income Taxes

-5,013,144,977

-4,626,995,790

-3,577,719,218

Cash Flows from Investing

-14,352,652,946

-19,372,274,749

-86,770,518,182

Cash Inflow from Investing

234,533,954

2,093,347,950

120,990,169

Cash Outflows for Investing

-14,587,186,900

-21,465,622,699

-86,891,508,351

Cash Flows from Financing

6,612,028,739

11,202,706,589

86,887,395,304

Cash Inflows from Financing

163,531,828,049

203,485,434,749

186,139,725,771

Cash Outflows from Financing

-156,919,799,310

-192,282,728,160

-99,252,330,467

Increase/Decrease in Cash

8,575,845,036

5,951,296,619

9,558,727,172

Cash at the Beginning of Year

11,145,812

-51,865,973

-167,311,677

Cash at the End of Year

2,997,424,072

8,575,845,036

5,951,296,619

 

 

Products, Technologies, Services Description

 

Main Products & Services

PP Compounds, Breathable Compounds, Thermoplastic Elastomer, Adhesive Resin, Crosslinkable PE, Barrier Resin, PE Pipe

 

Brand Name : SUPOL, Plasmer, Solarene

Detailed Products Spec.

--

Technologies Acquired

--

 

 

Trade Partners & Competitors

 

Suppliers

LG CHEM LTD.(110111-2207995)

MITSUI(JAPAN)

DOW CHEMICAL(USA)

Customers

SAMSUNG ELECTRONICS CO., LTD.(130111-0006246)

LG ELECTRONICS INC.(110111-2487050)

Competitors

LG CHEM LTD.(110111-2207995)

KUMHO POLYCHEM CO., LTD.(110111-0400533)

KUMHO PETRO CHEMICAL CO., LTD.(110111-0205975)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

HYUNDAI DEVELOPMENT CO.-ENGINEERING & CONSTRUCTION(110111-0279433)

I CONTROLS INC.(110111-1775365)

I-SERVICE CO., LTD.(110111-0829486)

I&CONS CO., LTD.(110111-1886071)

I INVESTMENT TRUST MANAGEMENT CO., LTD.(110111-2008533)

HYUNDAI I'PARK MALL CO., LTD.(110111-1635189)

I-PARK SPORTS CO., LTD.(180111-0441153)

I&E CO., LTD.(131111-0098416)

HOTEL I-PARK CO.,LTD.(110111-3177220)

NAMYANGJU I'WAY CO., LTD.(284111-0060180)

PYEONGTAEK I-PORT CO., LTD.(110111-3333963)

BUKHANG I'BRIDGE CO., LTD.(180111-0560979)

WELCOMEEDUESERVICE CO., LTD.(110111-3995424)

YOUNGCHANG CO., LTD.(120111-0006165)

BUSAN CONTAINER TERMINAL CO., LTD.(110111-5031648)

TONG-YEOUNG ECO POWER CO., LTD.(191211-0022239)

IPARKMARINA CO., LTD.(180111-0910166)

HYUNDAI PCE CO., LTD.(131211-0038402)

TENJIN YOUNGCHANG KANGKUM JUGEON CO., LTD.(CHINA)

ICONTROLS VIETNAM CO., LTD.(VIETNAM)

AND MUSIC CORP.(USA)

HDC INDIA PRIVATE LTD.(INDIA)

Overseas Office

HYUNDAI (SAMHA) GONGJUNG SORYO CO., LTD.(CHINA)

BEIWAIHUAN ROAD SOUTH, KOREA INDUSTRIAL AREA XIAOQU ROAD WEST, HEBEI PROVINCE, P.R. CHINA

 

HYUNDAI ENGINEERING PLASTICS INDIA PRIVATE LIMITED(INDIA)

NO.137, VAYALUR VILLAGE, THIRUVALLUR DISTRICT 602 TAMILNADU HYUNDAI EP INDIA PVT. LTD.

 

GUANGDONG HYUNDAI SK ADVANCED POLYMER CO., LTD.(CHINA)

ZHAOQING HIGH TECHNOLOGY INDUSTRY DEVELOPMENT ZONE, GUANGDONG, P.R. CHINA

 

HYUNDAI ENGINEERING MATERIALS(S.I.P) CO., LTD.(CHINA)

E4 FACTORY ZHUJIA DISTRICT SUZHOU INDUSTRIAL PARK, SUZHOU, P.R. CHINA

 

TENJIN YOUNGCHANG CO., LTD.(CHINA)

EAST SIDE, CUIJIAMATOU VILLAGE, DOGLI DISTRICT, TIANJIN, P.R. CHINA

 

YOUNG CHANG NORTH AMERICA(USA)

19060 S. DOMINGUEZ HILLS DR. RANCHO DOMINGUEZ, CA 90220

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

GUANGDONG HYUNDAI ENGINEERING PLASTICS CO., LTD.(CHINA : HEP GUANGDONG)

HYUNDAI (SANHE) ENGINEERING PLASTICS CO., LTD.( CHINA : HEP SANHE)

HYUNDAI ENGINEERING PLASTICS INDIA PRIVATE LTD.(INDIA : HEP INDIA)

HYUNDAI (DAFENG) ENGINEERING PLASTICS CO., LTD.( CHINA : HEP DAFENG)

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Thousand KRW

09/2010

2010

2009

Export

167,057,539

194,645,367

84,828,677

Domestic

318,938,631

258,135,312

126,326,449

Total

485,996,170

452,780,679

211,155,126

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

 

 

The Subject Company & Others(1)

Split of Co-owned properties

225,282,000

Proceeding

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.07

UK Pound

1

Rs.98.73

Euro

1

Rs.77.46

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

 

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.